Res 2015-170/approving an amendment to the Service Contract for Water Treatment Facilities Operations and Asset Management between the City and the Guadalupe-Blanco River Authority to extend the contract for an additional five year term and modifying the

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ftiE('1T1"..4' .AN MA1tC O *• "� Z December 1, 2015 William E. West General Manager Guadalupe-Blanco River Authority 933 East Court Street Seguin, Texas 78155 Re: First Five Year Renewal of and Third Amendment to Plant Operating Agreement Dear Mr. West: This letter, upon signature by both parties will constitute an agreement between the parties and may, hereinafter, be referred to as the First Five Year Renewal of and Third Amendment to Plant Operating Agreement. The Guadalupe-Blanco River Authority ("GBRA" or the "Authority") and the City of San Marcos (the "City") entered into an agreement entitled "Service Contract for Water Treatment Facilities Operations and Asset Management" dated September 20, 2005, as amended by letter agreements dated March 13, 2009 and August 17, 2010 (the "Plant Operating Agreement"). Pursuant to Section 3.1 of the Plant Operating Agreement, the Initial Term is 10 years from the Commencement Date as defined therein and expires on December 16, 2015. Section 3.2 of the Plant Operating Agreement provides for up to two additional renewal terms by mutual agreement of the parties. The parties wish to renew the Plant Operating Agreement for an additional five years. At a duly called election on November 3, 2015 a majority of voters approved an amendment to the San Marcos City Charter concerning fluoride that provides: The City of San Marcos shall not add, or direct or require its agents to add fluoride in the form of hydrofluorosilicic acid, hexafluorosilicic acid, or sodium silicofluoride to the San Marcos municipal water supply. Appendix 6, paragraph 1, bullet number three of the Plant Operating Agreement, however, requires the GBRA to operate the Facilities to produce finished water with "Fluoride levels at 0.7-1.0 mg/l." As this requirement is inconsistent with said voter-approved amendment to the San Marcos City Charter, the City has requested that this requirement be deleted from the Plant Operating Agreement. For the reasons stated above and in consideration of the mutual benefits to be received by the City and GBRA hereunder, the City and GBRA agree as follows: CITY HALL•630 EAST HOPKINS • SAN MARCOS,TEXAS 78666 • 512.393.8101 • FACSIMILE 855.759.2846 SANMARCOSTX.GOV